2017 (11) TMI 1963 - Tri - Insolvency and Bankruptcy

Maintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditor - existence of debt and dispute or not - HELD THAT - Since an application under section 7 of the Code of 2016 read with Rule 4 of the Rules of 2016 has already been admitted against the CD herein and since further necessary actions which are required to be taken in accordance with Law and Rules framed there-under have already been taken, this authority is of the opinion that the FC herein be directed to approach the IRP, appointed in the aforesaid proceeding for doing needful in accordance with law in regard to the claim of the FC herein. The FC is asked to approach IRP, appointed by this authority in Dy.No. 529 - present proceedings disposed off.

Summary

Issues:
Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Assam Company India Limited (CD) by Central Bank of India, rectification of defects in the application, objections by CD, appointment of Interim Resolution Professional (IRP), direction to FC to approach IRP.

Analysis:
The Central Bank of India, as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of corporate insolvency resolution process against Assam Company India Limited (CD). The application was scrutinized, and defects were noticed, leading to directions for rectification. The CD rectified the defects as notified. Subsequently, the Adjudicating Authority (AA) issued notice to the CD to submit objections against the application. The CD filed objections, and after hearing both parties, the AA found further defects in the application. The FC was directed to rectify these defects, which were subsequently addressed within the specified period.

In compliance with the Code of 2016 and the Rules, the application was found to be in accordance with the requirements of the law and the Rules. Another application by Srei Infrastructure Finance Ltd. against the CD was admitted, and an Interim Resolution Professional (IRP) was appointed as per Sections 13 and 14 of the Code. The AA directed the FC to approach the IRP appointed in the other proceeding for necessary actions regarding the claim of the FC. Consequently, the FC was instructed to approach the IRP appointed in Dy.No. 529 for further proceedings.

The judgment concluded by disposing of the present proceeding and ordering the FC to approach the designated IRP. A copy of the order was to be provided to all concerned parties promptly. The decision emphasized adherence to the Code of 2016 and the Rules framed thereunder for the resolution process.